CARES ACT

April 1st 2020

What is the CARES Act?

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in order to provide relief for small business and their employees affected by the ongoing outbreak of COVID-19 (Coronavirus). The goal was to help keep small businesses running and employees working. As a service to our clients and those on our mailing list, we want to be sure you are aware of these provisions and options for your business during this difficult time. Please speak to your legal and accounting advisors for additional guidance.

Key Points of the CARE Act:

Loan: The act will allow for small business loans up to the lessor or $10 million or 2.5 times the average monthly payroll cost during the 1-year period before the date on which the loan is made. New businesses will be determined by the average payroll from January 1st 2020 - February 29th 2020.
Loan Forgiveness: Loan forgiveness will be eligible for an 8-week period after the loan's origination date in the amount equal to the sum of payroll costs, rent, utilities, and interest on mortgage. The amount of loan forgiveness is reduced based on reductions in the number of employees or payroll during the covered period. This loan forgiveness is NOT treated as taxable income.
Use of Proceeds: You can use the loan amount to pay for payroll, employee health care benefits, mortgage/rent, utilities, and qualified debt obligations.
Eligibility: Small businesses, with under 500 employees, who have/are currently experiencing economic uncertainty caused by the affects of COVID-19. This includes companies who are dealing with financial and staffing complications due to reduced business.

Want to Learn More?
What will my interest be on the loan? Do I have to start making payments right away? How long can or will my loan be for? We know you may have questions. Please refer to the full act here.

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

LloydApril 6, 2020